ASX fintech shares initially saw their values fall with the onset of COVID-19 as fears around the economic impacts of the pandemic weighed heavily on investors. Online lenders were forced to take action to protect the quality of their loan books. Payment solution providers saw demand for some products drop. But some ASX fintech companies have fought back with new products and innovative takes on conservative lending models. On that note, let’s look at how 3 ASX fintech shares are tackling COVID-19 head on. 

EML Payments Ltd (ASX: EML) 

The EML Payments share price has recovered strongly since the March market meltdown, gaining more than 160% since its $1.34 low. Currently trading at $3.52, the EML share price has yet to regain its February highs of above $5. EML provides payment solutions for payouts, gifts, rewards, incentives, and supplier payments. 

Impact of COVID-19

COVID-19 had a significant impact on EML, with mall closures negatively affecting shopping centre gift card sales. This led EML Payments to suspend revenue guidance. The company advised it was difficult to predict how weaker economic conditions would ultimately impact on gift card sales. In March 2020, EML’s Gifts & Incentives segment saw gross debit volume (GDV) fall 29% on the prior corresponding period. In April, GDV fell 53% to $31.4 million, compared to $66.5 million in the prior corresponding period.

Longer term outlook 

EML expects COVID-19 to accelerate the move towards digital payments. Longer term, this is likely to benefit EML. Since the beginning of the year, the company has launched several new products and entered into new client contracts to drive its expansion. For example, EML’s ControlPay solution enables companies to facilitate finance to consumers via a digital card on a mobile device. This allows the credit provider to make real time credit decisions on a transaction-by-transaction basis. EML assumes no credit risk on these transactions. 

The company has signed contracts for the use of ControlPay with 3 companies in the neo-lending space, with programs expected to be live by early FY21. The solution is also being utlised in the buy now, pay later (BNPL) sector, with EML launching a pilot program with Zip Co Ltd (ASX: Z1P). The company also has approval to launch in Europe with BNPL provider Scalapay, and in North America with Sezzle Inc (ASX: SZL). 

Wisr Ltd (ASX: WZR)

The Wisr share price is up a whopping 250% from its low of 7 cents in March. Now trading at 24.5 cents, the share price has yet to regain its February highs of above 30 cents. The recent rise in the Wisr share price saw the company join the All Ordinaries (INDEXASX: XAO) in the most recent quarterly rebalance. Wisr is an online lender with the vision of enhancing customer financial wellness through an ecosystem of products that allow for low cost customer acquisition. 

Loan origination levels spike 

Last month, Wisr announced that its loan origination levels spiked in May, delivering 48% growth on April. The company delivered a total of $23.1 million in new loans across April and May. Deliberate steps were taken to tighten the company’s credit policy and moderate loan originations in response to COVID-19 disruptions. Growth in May saw loan originations return to pre-COVID levels, despite maintaining the significantly tighter credit policy introduced in March. A new record in total weekly settled loan volumes was also set even with the whole company working from home. 

CEO Anthony Nantes said, “In May, we achieved the milestone of the highest weekly settled loan volume in the Company’s history and have now surpassed pre-COVID-19 origination levels. This is an exceptional validation of our fintech business model, proprietary technology, and high-performance culture”.  

Quality loan book 

Wisr’s loan book is of prime quality, with an average credit score of 712 (above the Australian average score of ~600). At the end of May, 6.7% of total loan portfolio balances were on COVID-related payment deferrals. These loan deferral rates compare favourably to industry-wide deferral rates for residential mortgages (10%) and SME business loans (14%). The impact of heightened customer hardship stemming from COVID-19 is expected to be very manageable given Wisr’s solid balance sheet and low exposure to high-risk sectors. 

Money3 Corporation Limited (ASX: MNY) 

The Money3 share price has climbed nearly 110% from its March low of 81 cents. Currently trading at $1.69, the Money3 share price remains well below its high of over $3 in February. Money3 provides personal and car loans in Australia and New Zealand. Around 1 in 500 registered vehicles in Australia have a loan with Money3. 

Strong pre-COVID results 

Money3 reported strong results in the year to March 2020, with revenue up 44% to $93.3 million. EBITDA grew 43.6% to $44.4 million with NPAT increasing 49.2% to $22.9 million. The gross loan book was valued at $443 million at the end of March. The introduction of stage 3 restrictions, however, reduced demand for automotive finance in Australia. Stage 4 restrictions saw the New Zealand market close although customers continued to seek loan pre-approvals during lockdown.

Lending continues 

The company continues to make new loans to customers with stable incomes. Movements in arrears have been immaterial, both in Australia and New Zealand, and comfortably within internal receivables targets. Government stimulus is expected to positively impact customers’ ability to make payments on their loans. New loan originations continue, albeit with prudence to unaffected industries. Money3’s loan book has low leverage and is predominantly funded by equity. 

Future growth 

Money3 reports it is in a strong financial position with a cash balance of $43 million at the end of April. Last month, Money3 extended its debt facility agreement by one year to 15 December 2021. The interest rate on the facility will also be reduced by 100 basis points effective from 15 December 2020. The company has been lending conservatively throughout the pandemic. Money3 says it is well-positioned to make opportunistic acquisitions and originate new organic growth when demand returns. 

Foolish takeaway

The economic downturn will inevitably have an impact on online lenders and payment providers. But these ASX fintech shares are taking action to minimise downsides and maximise opportunities as growth returns. 

More reading

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• Top brokers name 3 ASX shares to buy right now

Kate O’Brien has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Emerchants Limited. The Motley Fool Australia has recommended Sezzle Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In a virtual meeting held on Thursday afternoon, prime minister Scott Morrison and his Japanese counterpart Shinzō Abe discussed further strengthening the defence and security relationship between Australia and Japan. Officials from both countries have also signed a new agreement between the two countries’ space agencies to work together on space science, research and education.

Both Australia and Japan have a well developed defence contracting sector. Therefore, I think it will be the more innovative companies in the sector that will benefit from this strengthened relationship. That is, companies with one-of-a-kind technology. Here’s a closer look at 3 ASX shares that fit the bill.

Space technology

Electro Optic Systems Hldg Ltd (ASX: EOS) is one of Australia’s leading defence companies formed in 1983 from the privatisation of Commonwealth of Australia space activity. Its products are based on proprietary sensor technology. 

The company is continually developing technology to help with over 500,000 pieces of space debris travelling at around 30,000 km per hour. This represents a serious threat to satellites, the international space station and more.

In this area, Electro Optic has an Australian-based space situational awareness (SSA) network. This monitors and tracks orbiting space-based objects. For instance, satellites and debris, using ground-based radar and optical stations.

The company also uses its sensors in the development of vehicle mounted, battle tested, remote weapons stations. Consequently, last Friday, Electro Optic Systems announced that it was in negotiations with the Commonwealth Government for 251 remote weapons stations (RWS) to be purchased over 12 months.

Artificial intelligence

Brainchip Holdings Ltd (ASX: BRN) is a company working in artificial intelligence (AI). It was started by a 40-year pioneer in information technology, a professional who is still with the company as its chief technology officer. The company already has successful AI products and is currently working on a first-of-its-kind technology, a neuromorphic system-on-a-chip.

Neuromorphic systems are large-scale systems of integrated circuits. Therefore, as the name implies, they mimic the human nervous system. Neuromorphic computing is considered the 5th generation of artificial intelligence by the Artificial Intelligence Board of America. 

The company has existing products used across defence and security already. It is a leading provider of security software to the casino industry for a range of security applications such as currency identification, player behaviour patterns, and game table operations.

Major airports use the product for facial recognition of terrorist suspects. In addition, unnamed European police departments have deployed the product in subways to search for known criminals. 

With the new product in advanced stages of development, the potential for further application of a system that learns for itself is very broad.

Advanced composite materials

Xtek Ltd (ASX: XTE) is a company with a patented technology called XTclave for curing and consolidating composite materials. The company has already installed an industrial sized machine in their Adelaide premises. This is large enough to support ~$40 million in revenues per year, and Xtek is also looking to install another one at its recently acquired US base.

Xtek’s technology manufactures high-quality void-free, precision ballistic and structural composite solutions. This includes, armour, lightweight tactical and human carriage equipment, robotic mechanical systems and unmanned craft.

For instance, the company is the primary provider to the Australian Department of Defence for portable X-ray equipment, demolition remote firing systems, and explosive ordinance robots. Furthermore, it sells the Xtek Tac2 Sniper Rifle as well as small unmanned aerial systems (SUAS). Agencies of the US Department of Defense and allied military services use the latter.

Finally, the company also manufactures a range of ballistic armour, which is up to 30% lighter than current benchmarks due to the company’s patented technology.

Foolish takeaway

The Australian defence sector is large and includes other great companies like Austal Limited (ASX: ASB), Quickstep Holdings Limited (ASX: QHL), and Bisalloy Steel Group Limited (ASX: BIS).

However, in the case of closer Australia and Japan ties, I think those companies offering a hard to replicate capability are more likely to see early success. 

Moreover, all of the companies mentioned also have either direct applications, or potential applications, in space exploration. 

More reading

• 3 ASX shares for the $270 billion defence plan
• Xtek share price rises 11% on FY20 revenue guidance
• 3 innovative ASX shares to buy
• Why Electro Optic Systems, Mayne Pharma, Tyro, & WAM Leaders are racing higher
• EOS share price on watch following defence spending talks

Daryl Mather owns shares of Austal Limited and Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Austal Limited and Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Sezzle Inc (ASX: SZL) share price won’t be going anywhere on Friday and will remain in a trading halt.

Why is the Sezzle share price in a trading halt?

Sezzle shares have been placed into a trading halt while it takes advantage of a sharp rise in its share price to undertake a capital raising.

According to the release, the buy now pay later platform provider is aiming to raise approximately $86.3 million (US$60 million) to accelerate its growth strategy and strengthen its balance sheet.

Sezzle’s capital raising comprises a fully underwritten institutional placement to raise $79.1 million US$55 million and a non-underwritten share purchase plan (SPP) that aims to raise approximately $7.2 million (US$5 million).

The Afterpay Ltd (ASX: APT) rival advised that the pricing of the placement will be determined via a bookbuild process with an underwritten floor price of $5.00 per share.

This floor price represents a sizeable 28.1% discount to the last traded price of $6.95. It is also a 10% discount to its five-day volume weighted average price of $5.56 on 9 July 2020.

The company’s Executive Chairman and CEO, Charlie Youakim, commented: “Our strong 1H20 performance, improving consumer profile, and confidence in reaching an annualized run rate for UMS of US$1 billion (A$1.4 billion) by the end of 2020 allows us to be uniquely positioned to further expand through a number of near-term growth initiatives. Importantly, this capital raising will give us the ability to invest in these initiatives as well as fortify our balance sheet.”

How will the money be spent?

Sezzle revealed that its key priorities for the funds include investments in sales and marketing and product enhancement.

It also has its eyes on international expansion opportunities and plans to use the funds to support further market development in Canada and low cost testing in other markets.

More reading

• These ASX fintech shares are tackling COVID-19 head on
• Zip share price surges 30% in a week. Are we calling bubble yet?
• Why the Sezzle share price rocketed 32% higher today
• 2 ASX shares that could flourish in an Australian recession
• Top brokers name 3 ASX shares to buy right now

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Sezzle Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The PolyNovo Ltd (ASX: PNV) share price is pushing higher in morning trade following the release of a trading update.

At the time of writing the medical device company’s shares are up 2% to $2.49.

What did PolyNovo announce?

PolyNovo has been a strong performer in FY 2020 despite the adverse impact of the pandemic on the industry.

According to the release, in June, PolyNovo had a record month of sales in the United States. This has been driven by the opening of seven new hospital accounts in the country since the start of April. Total accounts in the key market are now up 67% since the end of FY 2019.

Management advised that it has achieved this by using a number of tools to support surgeons where face to face meetings were not possible.

Over in the United Kingdom, the company has made its first sale since launch. A total of six operations have been made in the market, which management believes is a sign that additional sales will follow.

And finally, in Europe there have been numerous applications of the NovoSorb BTM in the DACH countries (Germany, Austria and Switzerland). Sales are growing accordingly as it gains traction across the region.

All in all, sales for the June quarter were 33% greater than the March quarter.

As a result of this solid finish to the year, management has reiterated its previous guidance that product sales will at least double in FY 2020.

Managing Director, Paul Brennan said: “These sales results for NovoSorb BTM are very strong given the difficulties faced with CoVid19. Our teams have maintained their engagement with customers, and we continue to see sales growth.”

Chairman, David Williams, added: “Sales are still lumpy but there is a strong upward trajectory as surgeons embrace our product and the patient results it gives. While FY20 sales will show impressive growth over FY19, the sales run-rate is more impressive and should be a better indicator of the near-term future.”

Pivotal trial protocol update.

In a separate announcement, PolyNovo revealed that it has received formal feedback from the U.S. FDA on its Pivotal trial protocol. This includes a request for some additional information including a formalisation of the review points through the trial.

While this may result in a delay to the commencement of its trial recruitment, Mr Brennan believes the FDA’s request is a positive.

He said: “The request for further information from the FDA is positive and will give the trial clarity and ensure robust outcome measurements. We have the ongoing support of our BARDA colleagues, and we will announce funding arrangements immediately the FDA approve the IDE.”

More reading

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of POLYNOVO FPO. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Telstra Corporation Ltd (ASX: TLS) share price could be moving back into the buy zone thanks to the Australian Government.

Why is the Telstra share price one to watch?

According to an article in the yesterday’s, Australian Financial Review (AFR), 5G technology is a hot political topic right now.

Prime Minister Scott Morrison and his Japanese counterpart, Shinzo Abe, reportedly discussed strengthening bilateral cooperation between the two countries on 5G. 

That bodes well for leading telecommunications companies like Telstra going forward. The Aussie telco is shaping up as a leader in the domestic 5G space.

In fact, TPG Telecom Ltd (ASX: TPG) Executive Chairman, David Teoh, said a combined Vodafone-TPG would be playing catch-up with Telstra and Optus. That comment was made back in March prior to the recently approved $15 billion merger.

If the virtual summit between Prime Ministers Morrison and Abe is anything to go by, that race could be heating up. 

According to the AFR, Japan has ‘vowed to close the gap’ on Asian rival China in the 5G space. That should be music to the ears of shareholders who have watched the Telstra share price fall 43.5% in 5 years.

How is Telstra tracking in the 5G space?

I think Telstra’s push to be a 5G leader has been partially catalysed by the disruption from NBN Co. Telstra is proudly the first provider to enable standalone, end-to-end 5G across Australia.

According to the Telstra website, 5G will be ten times faster than existing 4G networks. The telco is also forecasting 1/30th of the latency (i.e. lag) with 10 times the network capacity and scale. 

Those are some impressive numbers. The group’s 5G network push also coincides with the current trend towards more working from home arrangements.

The coronavirus pandemic has forced businesses to rethink how they work. Some aspects of lockdown restrictions could remain in place even as we emerge from the pandemic which could place an emphasis on fast network speeds at home. For those worried about COVID-19 and 5G, Telstra also debunked a lot of rumours on its website here.

Foolish takeaway

I feel strengthening Australian-Japanese relations is a good sign for the Aussie economy. Much of our success right now is heavily reliant on China with relations currently a little frosty.

If Telstra can continue to be a market leader in the 5G space, it could well capitalise on strengthened collaboration with Japan beyond 2020.

More reading

• Is the Telstra share price a buy?
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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Bellevue Gold Ltd (ASX: BGL) share price is on watch today after the company announced its intention to accelerate its project development with a significant capital raising. 

On Thursday, many prominent gold explorers on the ASX saw a rise in share price. For instance, the Hammer Metals Ltd (ASX: HMX) share price rose by 10%, Orecorp Ltd (ASX: ORR) experienced a 7.5% rise and Red 5 Limited (ASX: RED) saw its share price increase by 6.52%. 

The Bellevue share price begins trading today after being in a trading halt on Thursday pending this announcement. Bellevue is exploring and developing one of the highest-grade new gold discoveries globally consisting of 2.3 million ounces (Moz) at 10 grams per tonne (g/t). Equally important, is the fact that this discovery is located in the Wiluna Greenstone Belt. Other notable ASX gold miners including the likes of Northern Star Resources Ltd (ASX: NST) and Saracen Mineral Holdings Limited (ASX: SAR), as well as Hammer Metals, also operate within close proximity to this area.

Why is the Bellevue share price on watch?

Bellevue is undertaking raising $100 million via a fully underwritten share placement. Moreover, the placement issue price of $1.00 per share is at a 10.7% discount to the last closing price. The company will also undertake a non-underwritten share purchase plan (SPP) for all eligible shareholders to raise up to $20 million at the same issue price as the placement.

New shares issued under the placement and SPP will rank equally with existing fully paid Bellevue shares on issue. The record date was Wednesday 8 July, meaning any shares purchased after this date are ineligible to participate. 

The Bellevue project has a significant, and growing, mineral resource of 2.3 Moz of gold. In addition, there is existing infrastructure close to the high-grade resource. Therefore, the capital costs of development are expected to be low. To illustrate further, the high-grade core is 480,000 oz at 15.5g/t.

The company intends to use the funds for a range of activities. First, to grow the known 2.3 Moz resource further. At present, the resource has grown by ~75,000 oz per month. The discovery cost of this has been A$18/oz since since December 2017.

Second, ongoing exploration for further discoveries as all gold veins remain open in every direction. Third, to fund underground mine development and non process infrastructure.

Management commentary

Bellevue Managing Director, Steve Parsons said the “…proceeds from the raising will help ensure we can unlock the full value of what is clearly an exceptional asset with extremely high grades and immense scope for further inventory growth”. He went on to say “By implementing our dual exploration and development strategy, we will seek to maximise our ability to create value for shareholders through both resource growth and project development”.

Bellevue share price

On Wednesday, the company’s share price was not far off all time highs and closed the day at $1.12, valuing the company at $766.7 million.

As a growing gold explorer, Bellevue has no current revenues and pays no dividends. At the time of writing, the gold price is trading at US$1808, just shy of the US$1884.20 all-time high reached in September 2011.

More reading

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• Why the Saracen share price has soared over 80% higher in the first half of 2020
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• ASX 200 drops 1.5% today, Afterpay falls 3%
• ASX 200 down 0.5%: Afterpay completes placement, big four banks tumble

Motley Fool contributor Daryl Mather owns shares of Bellevue Gold Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The AVITA Therapeutics Inc (ASX: AVH) share price will be on watch on Friday after the release of its fourth quarter update.

How did AVITA perform in the fourth quarter?

For the fourth quarter of FY 2020, the regenerative medicine company delivered total global revenue of US$3.88 million.

This was driven almost entirely by its U.S. RECELL System sales of US$3.79 million. This was broadly flat on the global revenue of US$3.94 million and U.S. RECELL System sales of US$3.78 million it generated in the third quarter.

For the full year, total revenue was approximately US$14.32 million. This was an increase of US$8.78 million or 160% over FY 2019’s sales. U.S. RECELL System sales contributed approximately US$13.79 million, an increase of US$9.39 million or 213% year on year.

At the end of the quarter, AVITA had a cash balance of approximately US$73.84 million. This was a decrease of US$5.92 million or 7.4% from the end of the third quarter. This reduction includes costs of more than US$1 million relating to its redomiciliation to the United States and its preparation for U.S. GAAP compliance.

“Most challenging commercial conditions.”

AVITA Therapeutics’ Chief Executive Officer, Dr. Mike Perry, was pleased with the company’s performance after facing the “most challenging commercial conditions” since the launch of the RECELL System.

He said: “We are pleased with our fourth quarter results given the challenges and limited patient and facility access that we have experienced with the onset of the COVID-19 pandemic.”

“Like many others, this quarter we witnessed the most challenging commercial conditions since the RECELL System was launched in the U.S. in early 2019. While burns are not considered elective procedures, the incidence of burns was not immune to the impact of COVID-19 as nationwide protective (executive) orders drove a reduction in accidents resulting in burn injuries,” he added.

Dr Perry concluded: “Despite the tough macro environment, the clear benefits of the RECELL System including shortened length of hospital stays, together with less invasive and fewer surgeries, continues to resonate with hospitals, physicians, and patients, which is reflected in our results this quarter.”

Outlook.

Dr. Mike Perry appears cautiously optimistic on the future.

He commented: “As with many companies in the current pandemic environment, it is difficult to predict revenue and procedural volume over the coming months, but we are pleased with current utilization rates and our physician commitment.”

The company also highlighted a large number of opportunities it is pursuing for the RECELL System. This includes its use in treating vitiligo, the outpatient burn market, and an expansion into Japan.

More reading

• 3 innovative ASX shares to buy
• Why Avita, Brickworks, Fisher & Paykel Healthcare, & WiseTech Global are tumbling lower
• ASX stock of the day: Avita Therapeutics share price climbs 8.4% as company redomiciles
• ASX 200 up again, ASX retailers make big gains

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Jameson Resources Limited (ASX: JAL) share price rocketed up by 13.33% on Thursday after a bankable feasibility study (BFS) on its Crown Mountain project forecast a pre-tax net present value (NPV) of US$376 million and an internal rate of return (IRR) of 36.4%.

Jameson Resources has two coking coal projects in Western Canada: the 1.7Mtpa clean coal operation, Crown Mountain, located in the Elk Valley in southeastern British Columbia, and another project in the Peace River region of British Columbia.

What were the details of the bankable feasibility study?

The BFS on the company’s Crown Mountain project demonstrated that over the project’s 15-year mine life it will produce an average of 86% of premium low volume high coking coal, which combusts at lower temperatures. In addition, 14% Pulverised Coal Injection coal (PCI), this is injected directly into blast furnaces without an intermediate coking phase.

The BFS reaffirms the robust economics of the project. First, the amount of waste removal required before extracting the coal is low, giving it a low strip ratio. Second, the project can operate at competitive operating costs through one of three deep water ports on the west coast of British Columbia.

The low life of mine costs are helped by ready availability of a skilled labour force without the requirements of having to build camp infrastructure, and excellent local vendor support.

Furthermore, there are opportunities to extend the life of mine through additional exploration, as well as opportunities to optimise the production. If the company undertakes either of these options it will increase the NPV and IRR of the investment. 

Some of the production optimisation options include increased utilisation of processing plant hours via optimised maintenance, low cost Chinese steel sourcing to reduce construction costs, and further evaluation of contract mining to extract the coal.

Jameson Resources is currently considering all options presented to determine the level of funding required. The current BFS proposes an owner-operator model, requiring purchase or lease of heavy mobile assets and all facilities. 

The company is considering various sources of funding. These include equity, debt, the use of contractors (to reduce overall pre-production capital requirements) and pre-paid offtake from the project.

About the Jameson Resources share price

The Jameson Resources share price jumped by 13.33% in Thursday’s trading to close at 17 cents per share, valuing the company at $44.84 million. Jameson Resources shares are down around 10%, year to date, and 20.93% down on this time last year. 

More reading

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• AVITA Therapeutics share price on watch after Q4 update
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• RPMGlobal share price up following acquisition of mining software company

Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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